Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Fees for Use of BATS Y-Exchange, Inc., 30376-30378 [2013-12161]
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30376
Federal Register / Vol. 78, No. 99 / Wednesday, May 22, 2013 / Notices
TKELLEY on DSK3SPTVN1PROD with NOTICES
Moreover, prior to the commencement
of trading, the Exchange will inform its
Equity Trading Permit Holders in an
Information Bulletin of the special
characteristics and risks associated with
trading the Shares. The Commission
notes that the Financial Industry
Regulatory Authority (‘‘FINRA’’), on
behalf of the Exchange,30 will
communicate as needed regarding
trading in the Shares with other markets
that are members of the ISG or with
which the Exchange has in place a
comprehensive surveillance sharing
agreement.
The Exchange represents that the
Shares are deemed to be equity
securities, thus rendering trading in the
Shares subject to the Exchange’s
existing rules governing the trading of
equity securities. In support of this
proposal, the Exchange has made
representations, including:
(1) The Shares will conform to the
initial and continuing listing criteria
under NYSE Arca Equities Rule 8.600.
(2) The Exchange represents that
trading in the Shares will be subject to
the existing trading surveillances,
administered by FINRA on behalf of the
Exchange, which are designed to detect
violations of Exchange rules and
applicable federal securities laws and
that these procedures are adequate to
properly monitor Exchange trading of
the Shares in all trading sessions and to
deter and detect violations of Exchange
rules and applicable federal securities
laws.
(3) Except for up to 10% of ADRs,
which may be unsponsored, the Fund
will invest only in equity securities
(including financial instruments that are
linked to the performance of foreign
issuers),31 ETPs, and BDCs that trade in
nature of the relationship to clients as well as
compliance with other applicable securities laws.
Accordingly, procedures designed to prevent the
communication and misuse of non-public
information by an investment adviser must be
consistent with Rule 204A–1 under the Advisers
Act. In addition, Rule 206(4)–7 under the Advisers
Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such
investment adviser has (i) Adopted and
implemented written policies and procedures
reasonably designed to prevent violation, by the
investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted
thereunder; (ii) implemented, at a minimum, an
annual review regarding the adequacy of the
policies and procedures established pursuant to
subparagraph (i) above and the effectiveness of their
implementation; and (iii) designated an individual
(who is a supervised person) responsible for
administering the policies and procedures adopted
under subparagraph (i) above.
30 The Exchange states that, while FINRA surveils
trading on the Exchange pursuant to a regulatory
services agreement, the Exchange is responsible for
FINRA’s performance under this regulatory services
agreement.
31 See notes 8 and 9, supra, and accompanying
text.
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markets that are members of the ISG or
are parties to a comprehensive
surveillance sharing agreement with the
Exchange.
(4) The Exchange has appropriate
rules to facilitate transactions in the
Shares during all trading sessions.
(5) Prior to the commencement of
trading, the Exchange will inform its
Equity Trading Permit Holders in an
Information Bulletin of the special
characteristics and risks associated with
trading the Shares. Specifically, the
Information Bulletin will discuss the
following: (a) The procedures for
purchases and redemptions of Shares
and that Shares are not individually
redeemable; (b) NYSE Arca Equities
Rule 9.2(a), which imposes a duty of
due diligence on its Equity Trading
Permit Holders to learn the essential
facts relating to every customer prior to
trading the Shares; (c) the risks involved
in trading the Shares during the
Opening and Late Trading Sessions
when an updated Portfolio Indicative
Value will not be calculated or publicly
disseminated; (d) how information
regarding the Portfolio Indicative Value
is disseminated; (e) the requirement that
Equity Trading Permit Holders deliver a
prospectus to investors purchasing
newly issued Shares prior to or
concurrently with the confirmation of a
transaction; and (f) trading information.
(6) For initial and continued listing,
the Fund will be in compliance with
Rule 10A–3 under the Exchange Act,32
as provided by NYSE Arca Equities Rule
5.3.33
(7) The Fund will not invest in
options contracts, futures contracts, or
swap agreements.
(8) The Fund’s investments will be
consistent with its respective
investment objective and will not be
used to enhance leverage.
(9) The Fund may hold up to an
aggregate amount of 15% of its net
assets in illiquid securities (calculated
at the time of investment), including
Rule 144A securities.
(10) A minimum of 100,000 Shares for
the Fund will be outstanding at the
commencement of trading on the
Exchange.
This approval order is based on all of
the Exchange’s representations,
including those set forth above and in
the Notice, and the Exchange’s
description of the Fund.
For the foregoing reasons, the
Commission finds that the proposed
rule change, as modified by Amendment
No. 1 thereto, is consistent with Section
32 17
CFR 240.10A–3.
Notice, supra note 4, 78 FR at 21478.
33 See
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Fmt 4703
Sfmt 4703
6(b)(5) of the Act 34 and the rules and
regulations thereunder applicable to a
national securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Exchange Act,35
that the proposed rule change (SR–
NYSEArca–2013–33), as modified by
Amendment No. 1 thereto, be, and it
hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.36
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–12162 Filed 5–21–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69589; File No. SR–BYX–
2013–014]
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to Fees for Use
of BATS Y-Exchange, Inc.
May 16, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 3,
2013, BATS Y-Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
one establishing or changing a member
due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend the
fee schedule applicable to Members 5
34 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(2).
36 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 A Member is any registered broker or dealer that
has been admitted to membership in the Exchange.
35 15
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Federal Register / Vol. 78, No. 99 / Wednesday, May 22, 2013 / Notices
and non-members of the Exchange
pursuant to BYX Rules 15.1(a) and (c).
Changes to the fee schedule pursuant to
this proposal will be effective upon
filing.
The text of the proposed rule change
is available at the Exchange’s Web site
at https://www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
TKELLEY on DSK3SPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to modify fees
applicable to Members and nonmembers in order to encourage use of
connectivity that provides redundant
access to the Exchange by eliminating
any potential fees for logical ports 6 in
connection with such redundant access.
The Exchange currently charges a
monthly fee for ports used to enter
orders in the Exchange’s trading system
and to receive data from the Exchange.
The Exchange currently charges $400.00
per month per ‘‘pair’’ of any port type
other than a Multicast PITCH Spin
Server Port or a GRP Port.7 Each pair of
ports consists of one port at the
Exchange’s primary data center and one
port at the Exchange’s secondary data
center. Rather than stating that the fee
for logical ports is per ‘‘pair’’, the
Exchange proposes to simplify the fee
schedule by adding a footnote that states
that logical port fees are limited to
logical ports in the Exchange’s primary
data center and that no logical port fees
6 A logical port is commonly referred to as a TCP/
IP port, and represents a port established by the
Exchange within the Exchange’s system for trading
and billing purposes. Each logical port established
is specific to a Member or non-member and grants
that Member or non-member the ability to operate
a specific application, such as FIX order entry or
Multicast PITCH data receipt.
7 Thus, the charges apply to all Exchange FIX,
FIXDROP, BOE, DROP, TCP PITCH, and TOP ports.
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16:59 May 21, 2013
Jkt 229001
will be assessed for redundant
secondary data center ports. Although
this change to fee schedule language
will not result in any substantive change
to Members or non-members, as the
Exchange is already providing
secondary data center ports free of
charge, the Exchange believes that this
is a simpler way to bill for ports rather
than billing in pairs. Further, this will
allow the Exchange to include the
concept of a ‘‘primary’’ Multicast PITCH
data feed, as described below, without
confusion as related to the Exchange’s
primary data center.
In addition, the Exchange proposes to
modify the description of the billing for
ports related to the Exchange’s Multicast
PITCH data feed.8 The Exchange
currently provides 32 pairs of Multicast
PITCH Spin Server Ports free of charge
and, if such ports are used, one free pair
of GRP Ports.9 The Exchange charges
customers $400.00 per month per
additional set of 32 Multicast PITCH
Spin Server Ports or additional pair of
GRP Ports. Consistent with the change
described above, the Exchange proposes
to eliminate the concept of port ‘‘pairs’’
and instead maintain a fee schedule that
imposes fees only for logical ports at the
Exchange’s primary data center. Thus,
the Exchange will continue to provide at
the Exchange’s primary data center 32
Multicast PITCH Spin Server Ports free
of charge and, if such ports are used,
one free GRP Port and all redundant
Multicast PITCH Spin Server Ports and
GRP Ports at the secondary data center
will be free of charge. Again, although
not a substantive change for Members
and non-members, the Exchange
believes that this change simplifies the
fee schedule and also indicates the
Exchange’s support for Members and
non-members to establish sufficient
connectivity for business continuity
purposes.
Similarly, the Exchange proposes to
modify its fee schedule in order to allow
Members and non-members to take
redundant Multicast PITCH data feeds
from the Exchange. The Exchange’s
Multicast PITCH data feed is currently
8 The Multicast PITCH data feed is defined in
Rule 11.22(c) as ‘‘an uncompressed data feed that
offers depth of book quotations and execution
information based on equity orders entered into the
System.’’
9 The Exchange notes that its fees for Multicast
PITCH customers, including the current provision
of certain ports free of charge, are designed to
encourage use of the Exchange’s Multicast PITCH
data feed because the Exchange believes that the
feed is its most efficient feed, and thus, will reduce
infrastructure costs for both the Exchange and those
who utilize the feed. Any Member or non-member
that has entered into the appropriate agreements
with the Exchange is permitted to receive Multicast
PITCH Spin Server Ports and GRP Ports from the
Exchange.
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
30377
offered through two primary feeds,
identified as the ‘‘A feed’’ and the ‘‘C
feed’’, which contain the same
information but differ only in the way
such feeds are received. The Exchange
is in the process of commencing to offer
redundant versions of the Multicast
PITCH data feed and does not intend for
Members and non-members that
connect to such feeds to incur
additional port fees. As such, the
Exchange is proposing to modify its
description of Multicast PITCH logical
port fees so that only ports necessary to
take a primary feed (either A or C), and
not redundant versions of such feed, are
subject to logical port fees. Again, the
Exchange wishes to encourage Members
and non-members to establish
connectivity for business continuity
purposes, including in the event the
Exchange’s data center is fully
operational but a specific version of an
Exchange data feed becomes
unavailable.
Based on the proposal, the change
applies to Members that obtain ports for
direct access to the Exchange,
Sponsored Participants sponsored by
Members to receive direct access to the
Exchange, non-member service bureaus
that act as a conduit for orders entered
by Exchange Members that are their
customers, and market data recipients.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6 of the Act.10
Specifically, the Exchange believes that
the proposed rule change is consistent
with Section 6(b)(4) of the Act,11 in that
it provides for the equitable allocation
of reasonable dues, fees and other
charges among members and other
persons using any facility or system
which the Exchange operates or
controls.
The Exchange believes that its
proposed changes to logical port fees are
reasonable in light of the fact that all
such changes are intended to ensure
that Members and non-members are able
to establish redundant connections to
the Exchange without incurring
additional logical port fees. In addition,
the Exchange believes that the proposed
changes to fees are equitably allocated
among Exchange constituents as the cost
savings for redundant connectivity will
be available to all such constituents.
The Exchange reiterates that the change
10 15
11 15
E:\FR\FM\22MYN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
22MYN1
30378
Federal Register / Vol. 78, No. 99 / Wednesday, May 22, 2013 / Notices
to limit logical port fess to logical port
fees at the primary data center is not a
substantive change in that Exchange
constituents currently receive without
charge a corresponding port at the
secondary data center for any port
established at the primary data center.
The Exchange also believes that
providing financial incentives to use
Exchange technology that the Exchange
believes is the most technologically
efficient for the Exchange and its
constituents is a fair and equitable
approach to pricing. Accordingly, the
Exchange believes that promotion of its
Multicast PITCH data feed through the
continued offering of free logical ports
is fair and equitable. The Multicast
PITCH data feed is available to all
Members, and as such, all Members
have the ability to receive applicable
Multicast PITCH ports free of charge.
Further, the Exchange believes that
promoting the use of redundant
connectivity is reasonable, fair and
equitable and not unreasonably
discriminatory as it is uniform in
application amongst Members and nonmembers and should enable such
participants to enhance their business
continuity planning.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange will not assess
new fees as part of the proposal. Instead,
the proposal is focused on enhancing
the clarity of the fee schedule and
reducing barriers to Exchange Members
and non-member constituents that may
be seeking to establish redundant
connections to the Exchange.
TKELLEY on DSK3SPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 thereunder.13 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
12 15
U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f).
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16:59 May 21, 2013
Jkt 229001
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BYX–2013–014 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–BYX–2013–014. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BYX–
2013–014 and should be submitted on
or before June 12, 2013.
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–12161 Filed 5–21–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69590; File No. SR–NYSE–
2013–32]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of a Proposed Rule Change
Proposing an Amendment to the
Bylaws of Its Wholly-Owned
Subsidiary, NYSE Regulation, Inc.
(‘‘NYSE Regulation’’), To Eliminate a
Requirement That Not Less Than Two
Members of the Board of Directors of
NYSE Regulation Must Qualify as ‘‘Fair
Representation Candidates’’
May 16, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 8,
2013, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend an
amendment to the bylaws of its whollyowned subsidiary NYSE Regulation, Inc.
(‘‘NYSE Regulation’’) to eliminate a
requirement that not less than two
members of the board of directors of
NYSE Regulation must qualify as ‘‘fair
representation candidates’’ (as that term
is defined in those bylaws). A
requirement that such directors
constitute a minimum of 20% of the
board would remain in place. The text
of the proposed rule change is available
on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\22MYN1.SGM
22MYN1
]]>Agencies
[Federal Register Volume 78, Number 99 (Wednesday, May 22, 2013)]
[Notices]
[Pages 30376-30378]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-12161]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69589; File No. SR-BYX-2013-014]
Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Related to
Fees for Use of BATS Y-Exchange, Inc.
May 16, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 3, 2013, BATS Y-Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes to amend the fee schedule applicable to
Members \5\
[[Page 30377]]
and non-members of the Exchange pursuant to BYX Rules 15.1(a) and (c).
Changes to the fee schedule pursuant to this proposal will be effective
upon filing.
---------------------------------------------------------------------------
\5\ A Member is any registered broker or dealer that has been
admitted to membership in the Exchange.
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
Web site at https://www.batstrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to modify fees applicable to Members and non-
members in order to encourage use of connectivity that provides
redundant access to the Exchange by eliminating any potential fees for
logical ports \6\ in connection with such redundant access.
---------------------------------------------------------------------------
\6\ A logical port is commonly referred to as a TCP/IP port, and
represents a port established by the Exchange within the Exchange's
system for trading and billing purposes. Each logical port
established is specific to a Member or non-member and grants that
Member or non-member the ability to operate a specific application,
such as FIX order entry or Multicast PITCH data receipt.
---------------------------------------------------------------------------
The Exchange currently charges a monthly fee for ports used to
enter orders in the Exchange's trading system and to receive data from
the Exchange. The Exchange currently charges $400.00 per month per
``pair'' of any port type other than a Multicast PITCH Spin Server Port
or a GRP Port.\7\ Each pair of ports consists of one port at the
Exchange's primary data center and one port at the Exchange's secondary
data center. Rather than stating that the fee for logical ports is per
``pair'', the Exchange proposes to simplify the fee schedule by adding
a footnote that states that logical port fees are limited to logical
ports in the Exchange's primary data center and that no logical port
fees will be assessed for redundant secondary data center ports.
Although this change to fee schedule language will not result in any
substantive change to Members or non-members, as the Exchange is
already providing secondary data center ports free of charge, the
Exchange believes that this is a simpler way to bill for ports rather
than billing in pairs. Further, this will allow the Exchange to include
the concept of a ``primary'' Multicast PITCH data feed, as described
below, without confusion as related to the Exchange's primary data
center.
---------------------------------------------------------------------------
\7\ Thus, the charges apply to all Exchange FIX, FIXDROP, BOE,
DROP, TCP PITCH, and TOP ports.
---------------------------------------------------------------------------
In addition, the Exchange proposes to modify the description of the
billing for ports related to the Exchange's Multicast PITCH data
feed.\8\ The Exchange currently provides 32 pairs of Multicast PITCH
Spin Server Ports free of charge and, if such ports are used, one free
pair of GRP Ports.\9\ The Exchange charges customers $400.00 per month
per additional set of 32 Multicast PITCH Spin Server Ports or
additional pair of GRP Ports. Consistent with the change described
above, the Exchange proposes to eliminate the concept of port ``pairs''
and instead maintain a fee schedule that imposes fees only for logical
ports at the Exchange's primary data center. Thus, the Exchange will
continue to provide at the Exchange's primary data center 32 Multicast
PITCH Spin Server Ports free of charge and, if such ports are used, one
free GRP Port and all redundant Multicast PITCH Spin Server Ports and
GRP Ports at the secondary data center will be free of charge. Again,
although not a substantive change for Members and non-members, the
Exchange believes that this change simplifies the fee schedule and also
indicates the Exchange's support for Members and non-members to
establish sufficient connectivity for business continuity purposes.
---------------------------------------------------------------------------
\8\ The Multicast PITCH data feed is defined in Rule 11.22(c) as
``an uncompressed data feed that offers depth of book quotations and
execution information based on equity orders entered into the
System.''
\9\ The Exchange notes that its fees for Multicast PITCH
customers, including the current provision of certain ports free of
charge, are designed to encourage use of the Exchange's Multicast
PITCH data feed because the Exchange believes that the feed is its
most efficient feed, and thus, will reduce infrastructure costs for
both the Exchange and those who utilize the feed. Any Member or non-
member that has entered into the appropriate agreements with the
Exchange is permitted to receive Multicast PITCH Spin Server Ports
and GRP Ports from the Exchange.
---------------------------------------------------------------------------
Similarly, the Exchange proposes to modify its fee schedule in
order to allow Members and non-members to take redundant Multicast
PITCH data feeds from the Exchange. The Exchange's Multicast PITCH data
feed is currently offered through two primary feeds, identified as the
``A feed'' and the ``C feed'', which contain the same information but
differ only in the way such feeds are received. The Exchange is in the
process of commencing to offer redundant versions of the Multicast
PITCH data feed and does not intend for Members and non-members that
connect to such feeds to incur additional port fees. As such, the
Exchange is proposing to modify its description of Multicast PITCH
logical port fees so that only ports necessary to take a primary feed
(either A or C), and not redundant versions of such feed, are subject
to logical port fees. Again, the Exchange wishes to encourage Members
and non-members to establish connectivity for business continuity
purposes, including in the event the Exchange's data center is fully
operational but a specific version of an Exchange data feed becomes
unavailable.
Based on the proposal, the change applies to Members that obtain
ports for direct access to the Exchange, Sponsored Participants
sponsored by Members to receive direct access to the Exchange, non-
member service bureaus that act as a conduit for orders entered by
Exchange Members that are their customers, and market data recipients.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of Section 6 of the Act.\10\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\11\ in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and other persons using any facility or system which the
Exchange operates or controls.
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\10\ 15 U.S.C. 78f.
\11\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that its proposed changes to logical port
fees are reasonable in light of the fact that all such changes are
intended to ensure that Members and non-members are able to establish
redundant connections to the Exchange without incurring additional
logical port fees. In addition, the Exchange believes that the proposed
changes to fees are equitably allocated among Exchange constituents as
the cost savings for redundant connectivity will be available to all
such constituents. The Exchange reiterates that the change
[[Page 30378]]
to limit logical port fess to logical port fees at the primary data
center is not a substantive change in that Exchange constituents
currently receive without charge a corresponding port at the secondary
data center for any port established at the primary data center.
The Exchange also believes that providing financial incentives to
use Exchange technology that the Exchange believes is the most
technologically efficient for the Exchange and its constituents is a
fair and equitable approach to pricing. Accordingly, the Exchange
believes that promotion of its Multicast PITCH data feed through the
continued offering of free logical ports is fair and equitable. The
Multicast PITCH data feed is available to all Members, and as such, all
Members have the ability to receive applicable Multicast PITCH ports
free of charge. Further, the Exchange believes that promoting the use
of redundant connectivity is reasonable, fair and equitable and not
unreasonably discriminatory as it is uniform in application amongst
Members and non-members and should enable such participants to enhance
their business continuity planning.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the Exchange
will not assess new fees as part of the proposal. Instead, the proposal
is focused on enhancing the clarity of the fee schedule and reducing
barriers to Exchange Members and non-member constituents that may be
seeking to establish redundant connections to the Exchange.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4
thereunder.\13\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BYX-2013-014 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BYX-2013-014. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BYX-2013-014 and should be
submitted on or before June 12, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-12161 Filed 5-21-13; 8:45 am]
BILLING CODE 8011-01-P
